2000 Albuquerque employee benefits

1
2000 Albuquerque Employee Benefits
NEW MEXICO DEPARTMENT OF LABOR
Clinton D. Harden, Jr., Secretary
New Mexico Department of Labor, Bureau of Economic Research and Analysis
Gerry Bradley, Chief Economist
Questions about this report should be directed to Elisa Walker- Moran, at ( 505) 841- 8037 or
EWalker- Moran@ state. nm. us.
Major Contributors:
Elisa Walker- Moran, Labor Economist
Karl Romero, Graphic Artist
JUNE 2000
The New Mexico Department of Labor wishes to thank those employers who provided data for this report.
FOR FURTHER INFORMATION CONTACT:
Economic Research and Analysis Bureau
New Mexico Department of Labor
401 Broadway, NE
PO Box 1928
Albuquerque, NM 87103
This report will be available on the Internet at http:// www. dol. state. nm. us/ dol_ lmif. html.
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INTRODUCTION
During the first week of April 2000, a four- page benefits survey form was mailed to 806 employers in
Albuquerque, New Mexico. These employers were randomly selected from the 1999 America’s Labor Market
Information System, Employer Database. Of the 806 surveys sent, we received 206 replies, a 26 percent re-sponse
rate; 177 of these were usable responses. Extra surveys were sent to ensure a high response rate without
a second mailing. All the responding firms employ full- time employees while 54 percent also employ part- time
employees. The total employees for all the employers who responded to this survey was 38,485. The employers
surveyed range across industries, size and ownership types. The companies selected for the survey are non-government
entities.
We would like to thank each employer in the Albuquerque area who took the time to complete and return the
survey form. We are grateful for their efforts and hope that they find this report useful.
For additional copies of the report, to obtain more information or to offer comments, please contact our
office.
TABLE OF CONTENTS
Introduction ............................................................................................................................... .......................... 2
Summary ............................................................................................................................... .......................... 3
Definitions ............................................................................................................................... ......................... 4
Number Of Employees ............................................................................................................................... ... 6
Workweek ............................................................................................................................... .......................... 6
Paid Time Off ............................................................................................................................... ....................... 6
Life Insurance ............................................................................................................................... .................. 8
Accidental Death and Dismemberment Insurance .............................................................................................. 8
Retirement Benefits ............................................................................................................................... .......... 8
Family Benefits ............................................................................................................................... ................... 9
Education and Training ............................................................................................................................... ..... 10
Flexible Work Schedules ............................................................................................................................... . 10
Health Insurance ............................................................................................................................... ................ 11
Pay Increases and Monetary Bonuses ........................................................................................................... 12
Cost of Benefits ............................................................................................................................... .............. 13
Other Benefits ............................................................................................................................... ................ 14
Benefits Survey Form........................................................................................................................... .............. 15
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SUMMARY OF SURVEY FINDINGS
This study found that the average workweek for most full- time employees is 40 hours. Beyond working a 40
hour workweek, most employees receive an average of seven paid holidays per year. In addition to holidays,
many employees also receive about eight days of flexible paid time off, which can include combined vacation and
sick. Most employers offer their employees anywhere from six to 13 separate vacation days depending on how
long they work for the firm. About half of employers offer employees about six days of sick leave separate from
flexible paid time off. A small percentage offer their employees unlimited sick leave. Other paid personal leave
includes days off for funerals, military service, doctor and dentist appointments, maternity and paternity leave, and
jury duty.
Most employers offer life and accidental death and dismemberment insurance to their employees. Most
employers also offer retirement benefits to their employees including: a traditional defined benefit pension plan,
deferred profit sharing, defined contribution plans, and employee stock ownership.
Maternity leave is offered to employees by over one- third of employers and paternity leave is offered to
employees by under one- third of employers. A small percentage of employers offer eldercare benefits to employ-ees.
A higher percentage of employers offer their employees childcare benefits. Childcare benefits include: 100
percent reimbursement, less than 100 percent reimbursement, in house child care, preschool and after school
care, a flexible spending account, and Section 125 Dependent Child Care Reimbursement.
Most employers offer paid education and training to their employees. This includes: job and non- job related
educational assistance, short- term training, paying 100 percent or a lesser percentage of the cost of the course,
paying for the course based on the course grade received, and seniority and years of service at the firm. Other
types of educational assistance listed include: scholarships, payment of licensing costs, continued education, work-shops,
apprenticeship training, and in- service training conferences.
Some employers offer some type of flexible work schedule. These employers allow their employees to
telecommute, work at home, job- share or take flex- time ( work a compressed workweek).
Health insurance is one of the fundamental parts of the benefits program. There are two main types of health
benefits: medical and dental. There are two components of each program: coverage for employees and depen-dents.
Most employers do offer medical benefits to their employees and their dependents. These employers pay
on average 86 percent of the cost of employee benefits and 84 percent of the cost of dependent benefits. Some
of these employers offer their employees a choice between the following medical plans: a traditional fee- for-service,
a health maintenance organization, and a preferred provider organization. Most employers do offer their
employees dental insurance and some offer vision insurance as well.
Employers offer a variety of pay increases including: cost of living, merit, and longevity. Most employers
offer a combination of pay increase types. Monetary bonuses are also offered to employees including: holiday,
performance based, longevity based, percentage of profits, signing bonuses, and company profits. As with pay
increases, employers offer their employees a combination of monetary bonus types.
This study found that employer- provided benefits cost the employers an average of 14 percent of total
payroll. Legally- mandated benefits, such as social security, unemployment insurance and worker’s compensation,
cost the employer an average of 12 percent of total payroll.
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DEFINITIONS
EMPLOYEE BENEFITS TERMINOLOGY
Benefits: Nonwage compensation provided to employees. Benefits are grouped into five categories: Paid
leave ( vacations, holidays, sick leave); supplementary pay ( premium pay for overtime and work on holidays and
weekends, shift differentials, nonproduction bonuses): retirement ( defined benefit and defined contribution plans):
insurance ( life insurance, health benefits, short- term disability, and long- term disability insurance and legally re-quired
benefits ( Social Security and Medicare, Federal and State unemployment insurance taxes, and workers’
compensation).
Personal Leave: Also known as general leave, personal leave provides employees with time- off from work
for various purposes not covered by other types of leave plans.
Life Insurance: Provides a lump- sum payment to a designated beneficiary or beneficiaries of deceased em-ployees.
Companies may provide a basic amount of life insurance benefits, which may vary depending on an
employee’s age, income, or occupation, and allow employees to pay for additional amounts of coverage.
Accidental Death and Dismemberment Insurance ( AD& D): Insurance that provides payment for accidental
loss of life, limb, hearing, or sight. Insurance usually covers both occupational and nonoccupational deaths and
injuries, but coverage may be limited to one or the other. Double indemnity provisions of life insurance plans are
considered to be AD& D if they provide benefits for both accidental death and dismemberment.
Deferred Profit Sharing Plan: A defined contribution plan under which a company credits a portion of
company profits to employees’ accounts. Plans may set a fixed formula for sharing profits but this is not a require-ments.
Most plans hold money in employee accounts until their retirement, disability, or death.
Defined Contribution Plan: A retirement plan in which the employer makes specified contributions but the
amount of the retirement benefit is not specified. Defined contribution plans may be wholly or partially funded by
employers.
401( k), 403 ( b) Plans: Defined contribution benefits plan established under Section 401 ( k) of the Internal
Revenue Code ( IRC) permit employees to make pre- tax contributions via salary reduction agreements. IRC
Section 403 ( b) plans are deferred compensation plans for employees of certain not- for- profit organizations and
public schools.
Defined Pension Plan: A retirement plan that uses a specific, predetermined formula to calculate the amount
of an employee’s future benefit. In the private sector, defined benefit plans are typically funded exclusively by
employer contributions. In the public sector, defined benefit plans often require employee contribution.
Employee Stock Ownership Plans ( ESOP): A defined contribution plan in which the employer contributes to
a fund that invests primarily in company stock and makes distributions in stock or cash. The plan must be specifi-cally
designated in its name or official description as an “ employee stock ownership plan.”
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Long- term Disability Insurance: Provides a monthly benefit to employees who, due to illness or injury, are
unable to work for an extended period of time. Usually LTD benefit payments begin after 3 or 6 months of
disability and continue until retirement age is reached, or for a specified number of months, depending on the
employee’s age at the time of the disability. Payments typically equal a fixed percent of predisability earnings.
Short- term Disability Plan: A benefit plan that provides full, partial, or a combination of full and partial pay, to
employees who are unable to work because of a non- work related accident or illness. Short- term disability
payments are normally paid for only a fixed number of weeks, typically 26 weeks. The benefit payment is either a
percentage of an employee’s earnings or a fixed dollar amount per week.
TYPES OF HEALTH INSURANCE PROGRAMS
Fee- For- Service Plan: A health care plan that reimburses care providers or patients after services have been
rendered. Fee- for- service plans allow workers to select the health care providers ( physicians and hospitals) of
their choice.
Health Maintenance Organization ( HMO): Organization that provides prepaid comprehensive health care
services. HMOs both insure and deliver health care services. Enrollees usually reside within a fixed geographic
area and are required to obtain services only from providers affiliated with the HMO. An exception to this case is
Point of Service Open- Ended HMOs, which allow enrollees the option of obtaining services from physicians and
facilities not affiliated with their HMO.
Preferred Provider Organization ( PPO): Preferred Provider Organization health plans offer a higher benefit
for services rendered by designated health care providers although plan participants are free to choose any pro-vider
they wish.
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NUMBER OF EMPLOYEES
Full- Time: Ninety- five percent of the employers responded to this question. Total employees for all employ-ers
who responded is 29,969. The median employer has 25 full- time employees.
Part- Time: Total employees for all employers who responded is 8,516. The median employer has 6 part-time
employees.
WORKWEEK
The employer response rate for full- time employees was 89 percent and for part- time employees was 76
percent. The median and average workweek for full- time employees is 40 hours while for part- time employees it
is 25 hours. The minimum for full- time employees is 30 hours and for part- time it is five hours. The maximum is 50
hours for full- time and 40 hours for part- time employees.
PAID TIME OFF
There are two general types of paid time off. The traditional method allocates leave by separate categories
such as vacation and sick leave. A more recent trend is toward flexible programs where the leave classifications
are combined into one pool from which employees draw when they need time away.
Five categories of paid time off were surveyed: paid holidays, flexible paid time off, sick leave, vacation and
other paid personal time.
PAID HOLIDAYS
Of the 177 surveys used, 81 percent of employers offer anywhere from one to 23 days of paid holidays to
full- time employees, with the average at seven days. Forty- three percent of the employers offer anywhere from
two to 23 days of paid holidays to part- time employees, with the average at eight days.
FLEXIBLE PAID TIME OFF
Twenty- three percent of employers offer a flexible paid time off
program to their full- time employees and 15 percent to their part- time
employees. These employers offer a combination of vacation/ sick,
vacation/ sick/ paid time off and vacation/ sick/ paid time off/ holiday to
be used at the employee’s discretion. Eighteen percent of the employ-ers,
offer combined vacation and sick leave.
There are differences between full- time and part- time employees. More employers offer this benefit to their
full- time employees. Some of the employers that offer this benefit to full- time but not to part- time employees, also
offer fewer days than those who offer it to both types of employees.
Full- time employees receive a median of 12 flexible days off. Part- time employees receive a median of eight
flexible days off.
Years of Service Full- Time Part- Time
1 year 12 8
3 years 14 8
5 years 15 8
10- 20 years 21 10
Flexible PTO: Median Days Off Per Year
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PAID SICK LEAVE
Fifty percent of the firms offer paid sick leave to full- time employ-ees
while 24 percent offer this benefit to part- time employees. Of
those that offer sick leave separate from vacation, full- time employees
receive a median of six paid sick days. Part- time employees receive a
median of four paid sick days.
Four percent of employers offer unlimited paid sick leave to full-time
employees. Six percent of employers offer unlimited paid sick
leave to part- time employees.
VACATION
Seventy- eight percent of the firms offer separate paid vacation to
their full- time employees. Thirty- seven percent of firms offer separate
paid vacation to their part- time employees. Generally, the longer an
employee is with a firm the more vacation they earn per year. The
median for those employed full- time for one year is six days off while
for those who work 20 years it is 15 days off. The median for those
employed part- time for one year is six days off while for those who
work 20 years it is 13 days off.
OTHER PAID PERSONAL LEAVE
Funeral, military service, doctor/ dentist
appointment, maternity/ paternity, and jury
duty are the most common paid leave allow-ances
offered by employers for other personal
needs. Full- time employees are offered a
higher percentage of these benefits than part-time
employees.
Employee Employers Median
Full- Time 50% 6
Part- Time 24% 4
Number of Sick Days Offered
Years of Service Full- Time Part- Time
1 year 6 6
3 years 10 8
5 years 11 10
10 years 15 11
20 years 15 13
Median Vacation Days Offered Per Year
Paid Other Personal Leave
0%
10%
20%
30%
40%
50%
60%
70%
Funeral
Military service
Doctor/ dentist
Maternity leave
Paternity leave
Jury duty
Moving
Education
Voting
Personal days
Offered by Employers
Full- Time
Part- Time
Unpaid Other Personal Leave
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Funeral
Military service
Doctor/ dentist
Maternity leave
Paternity leave
Jury duty
Offered by Employers
Full- Time
Part- Time
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LIFE INSURANCE
Life insurance is offered in 62 percent of firms to full- time employees and in
31 percent to part- time employees.
ACCIDENTAL DEATH AND DISMEMBERMENT INSURANCE
Accidental death and dismemberment insurance ( ADD) is offered in 51 percent of firms to full- time employ-ees
and in 30 percent to part- time employees.
Employees Life Death
Full- Time 62% 51%
Part- Time 31% 30%
Life & ADD Insurance
RETIREMENT BENEFITS
There were four categories of retirement benefits that were surveyed: tradi-tional
defined- benefit pension, deferred profit sharing, defined contribution plans
( such as 401( k) and 403b) and employee stock ownership. In a defined benefit
plan, the benefit amount is predetermined based on salary or years of service. In
a defined contribution plan, the employer or employee contributions are specified,
but the benefit amount is not guaranteed and is usually tied to investment returns.
Sixty- eight percent of employers offer retirement programs to their full- time employees and 38 percent to
their part- time employees.
Of those that answered, on average, 87 percent of
full- time employees participate in the traditional defined-benefit
pension - ten percent of employers answered this
question. On average, 86 percent of full- time employ-ees
participate in the deferred profit sharing - six percent
of employers answered this question. On average, 74
percent of full- time employees participate in the defined
contribution plans - 49 percent of employers answered
this question. On average, 91 percent of full- time em-ployees
participate in the employee stock ownership -
five percent of employers answered this question.
Of those that answered, on average, 100 percent
of part- time employees participate in the traditional de-fined-
benefit pension - four percent of employers an-swered
this question. On average, 98 percent of part-time
employees participate in the deferred profit sharing - two percent of employers answered this question. On
average, 67 percent of part- time employees participate in the defined contribution plans - 19 percent of employers
answered this question. On average, 93 percent of part- time employees participate in the employee stock owner-ship
- two percent of employers answered this question.
Forty- three percent of employers responded that they contribute to the retirement plan of their full- time
employees. On average, these employers match up to 11 percent of their employee’s 18 percent contribution.
Twenty percent of employers contribute to the retirement plan of part- time employees. On average, these employ-ers
match up to five percent of their employee’s 11 percent contribution.
Employee Percent offering
Full- time 68%
Part- time 38%
Retirement Programs
Retirement Plan Payment
0%
20%
40%
60%
80%
100%
Traditional
Deferred
profit
Defined
contribution
Stock
ownership
Employer
contribution
Employee
contribution
Average Employee Participation Rat
Full- Time
Part- Time
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FAMILY BENEFITS
MATERNITY AND PATERNITY BENEFITS
Since 1993, the federal Family Medical
Leave Act ( FMLA) has required employers with
50 or more employees within a 75- mile area to
provide up to 12 weeks of job- protected un-paid
leave to eligible workers for the birth or
adoption of a child, placement of a foster child
in the home, care of a seriously ill family mem-ber,
or personal health reasons.
Full- time: Thirty- six percent of employers offer paid and 40 percent offer unpaid maternity leave to their
employees. Twenty- eight percent of employers offer paid and 41 percent offer unpaid paternity leave.
Part- time: Twenty- three percent of employers offer paid and 26 percent offer unpaid maternity leave to their
employees. Nineteen percent of employers offer paid and 24 percent offer unpaid paternity leave.
ELDERCARE BENEFITS
Four percent of firms offer elder care benefits to their full- time employees and two percent to their part- time
employees.
CHILDCARE BENEFITS
Full- time: Thirteen percent of the firms surveyed offer
childcare assistance to their employees. Two percent offer
less than 100 percent reimbursement. One percent offer
100 percent reimbursement. Four percent offer in- house
child care. One percent offer preschool and after school
care. One percent offer a flexible spending account. Two
percent offer section 125 Dependent Child Care Reimburse-ment
( DCCR).
Part- Time: Six percent of the firms surveyed offer
childcare assistance to their employees. Two percent offer
less than 100 percent reimbursement. One percent offer
100 percent reimbursement. One percent offer in- house
child care. One percent offer section 125 Dependent Child
Care Reimbursement.
Percent employers offering: Employee Full- Time Part- Time
Maternity leave Paid 36% 23%
Unpaid 40% 26%
Paternity leave Paid 28% 19%
Unpaid 41% 24%
Family Benefits
Family Benefits
0%
4%
8%
12%
16%
Elder care
Childcare
Percentage
reimbursement
100%
reimbursement
In house child
care
Preschool/ after
school care
Flexible
spending
Section 125
DCCR
Offered by Employer
Full- Time
Part- time
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EDUCATION AND TRAINING
Full- Time: Sixty- seven percent of employers offer
educational assistance to their employees. Fifty- seven
percent of employers offer job related educational as-sistance
to their employees while 11 percent offer non-job
related educational assistance. Fifty- eight percent
of employers will pay for short- term training. Thirty- six
percent pay for 100 percent of the cost of the course
and ten percent pay a lesser percentage. Twenty per-cent
will pay for the course based on the course grade
received and two percent based on seniority and years
of service.
Part- Time: Forty percent of employers offer edu-cational
assistance to their employees. Thirty- one per-cent
offer job related educational assistance to their
employees while six percent offer non- job related edu-cational
assistance. Thirty- five percent of employers
pay short- term training. Seventeen percent pay for 100
percent of the cost of the course and two percent pay a
lesser percentage. Thirteen percent will pay for the course
based on the grade received.
Other Educational Assistance: Other types
of assistance listed include scholarships, payment
of licensing costs, continued education, workshops,
apprenticeship training, and in- service training con-ferences.
FLEXIBLE WORK SCHEDULES
Full- time: Twenty- eight percent of employers
offer some type of flexible work schedule. Nine
percent allow their employees to telecommute or
work at home. Seventeen percent offer flex- time.
Nine percent let their employees job- share.
Part- time: Thirty- two percent of employers
offer some type of flexible work schedule. Four
percent allow their employees to telecommute or
work at home. Twenty percent offer flex- time.
Eleven percent let their employees job- share.
Flexible Work Schedule
0%
10%
20%
30%
40%
Percent of
employers
offering:
Telecommuting
offered
Flextime
offered
Job sharing
offered
Employers Offering
Full- time
Part- time
Educational Assistance and Training
0%
20%
40%
60%
Percent
employers
offering
Job related
Non- job
related
Paid short-term
training
Employers Offering
Full- Time
Part- Time
Type of Educational Assistance
0%
10%
20%
30%
40%
100% cost
of course
Other
percentage
Based on
course
grade
Based on
seniority
Employers Offering
Full- time
Part- time
Other Educational Assistance
0%
2%
4%
6%
8%
10%
Scholarship
Licensing
costs
Continued
education
Workshops
Apprenticeship
training
Training
conference
Employers Offering
Full- time
Part- time
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HEALTH INSURANCE
Health insurance is one of the fundamental parts of a benefits program. There are two main types of health
benefits: medical and dental. There are two components of each program: coverage for employees and depen-dents.
MEDICAL INSURANCE
EMPLOYEE MEDICAL INSURANCE
Eighty- eight percent of employers offer
medical benefits to full- time employees and 39
percent to part- time. Eighty percent of full- time
employees participate in a medical benefits pro-gram.
Sixty percent of part- time employees
participate. Employers pay 86 percent of their
full- timers’ and 63 percent of their part- timers’
health insurance.
Full- time: Twenty- nine percent of employ-ers
offer their employees a choice between health
care plans. According to employers, at the me-dian,
75 percent of the full- time employees par-ticipate
in traditional fee- for- service, 66 percent
in health maintenance organizations ( HMOs),
and 67 percent in preferred provider organiza-tions.
Part- Time: Nineteen percent of employers offer their employees a choice between health care plans. Ac-cording
to employers, at the median, 60 percent of employees participate in traditional fee- for- service, 26 percent
in health maintenance organizations ( HMOs), and 23 percent in preferred provider organizations.
DEPENDENT MEDICAL INSURANCE
Seventy- nine percent of employers offer medical
insurance for dependents of full- time employees. Those
that offer medical insurance pay a median of 84 percent
of the cost. Thirty- five percent offer medical insurance
for dependents of part- time employees. Those that of-fer
medical insurance pay a median of 83 percent of the
cost.
DENTAL & VISION INSURANCE
About 68 percent of employers offer dental insurance to full- time employees and 33 percent to part- time.
About 41 percent of employers offer vision insurance to full- time employees and 16 percent to part- time.
Employee
Employers
Offering Median
Employer payment rate Full- Time 88% 86%
Part- Time 39% 63%
Employee participation rate Full- Time 81% 80%
Part- Time 21% 60%
Employee Medical Insurance
Participation rate: Employee
Employers
Offering Median
Traditional fee- for- service Full- Time 8% 75%
Part- Time 4% 60%
Health maintenance organization Full- Time 55% 66%
Part- Time 13% 26%
Preferred provider organization Full- Time 29% 67%
Part- Time 6% 23%
Insurance Plans
Employee
Employers
Offering Median
Employer payment rate Full- Time 79% 84%
Part- Time 35% 83%
Dependent Medical Benefits
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PAY INCREASES AND MONETARY BONUSES
PAY INCREASES
Full- Time: Five percent of the employers offer no pay
increase. Seven percent offer pay increases based on the cost
of living, 39 percent based on merit, and one percent based on
longevity. Many employers, 48 percent offer pay increases
based on a combination of the factors above.
Part- Time: Five percent of the employers offer no pay
increase. Seven percent offer pay increases based on the cost
of living, 33 percent based on merit, and two percent based on
longevity. Many employers, 31 percent offer pay increases
based on a combination of the factors above.
MONETARY BONUSES
Full- Time: Twenty percent of employers do not offer
monetary bonuses. Thirty- two percent offer holiday bonuses.
Many employers, 58 percent, offer performance- based bo-nuses.
Thirteen percent offer longevity- based bonuses and
one percent offer a percentage of the profits, signing bonuses
and company profits.
Part- Time: Twenty- five percent of employers do not
offer monetary bonuses. Twenty- four percent offer holiday
bonuses. Many employers, 38 percent, offer performance-based
bonuses and 15 percent offer longevity- based bonuses.
Monetary Bonuses
0%
10%
20%
30%
40%
50%
60%
None
Holiday
Performance
based
Longevity
based
Percentage
of profits
Signing
bonus
Company
profits
Full- Time
Part- Time
Pay Increases
0%
10%
20%
30%
40%
50%
None
Cost of living
Merit
Longevity
Combination
Full- Time
Part- Time
13
COST OF BENEFITS
We also asked employers for their firm’s cost of providing all fringe benefits, as a percentage of total payroll.
Full- Time: Sixty percent of employers responded to this question. Employer- provided benefits cost the
employer an average of 14 percent of total payroll. Legally- mandated benefits such as social security, unemploy-ment
insurance and worker’s compensation cost the employer an average of 12 percent of total payroll.
Part- Time: Thirty- three percent of employers responded to this question. Employer- provided benefits cost
the employer, on average, eight percent of total payroll. Legally- mandated benefits such as social security, unem-ployment
insurance and worker’s compensation cost the employer an average of nine percent of total payroll.
Cost of Benefits: Full- Time Employer
provided
benefits
14%
Legally-mandated
benefits
12%
Payroll
74%
Cost of Benefits: Part- Time
Payroll
83%
Employer
provided
benefits
8%
Legally-mandated
benefits
9%
1998
Total compensation 100
Wages and salaries 72.4
Benefits 27.7
Paid leave 6.6
Supplemental pay 2.6
Insurance 6.3
Retirement 3.8
Total legally required 8.2
Social Security/ Medicare 5.8
Social Security 4.7
Medicare 1.2
Unemployment insurance 0.7
Workers compensation 1.8
Other 0.2
Source: Bureau of Labor Statistics, Compensation
and Working Conditions, Spring 1999
Percent of employer compensation cost
by components of compensation, all
workers, all private establishments
The table below shows the percent of employer compensation cost by components of compensation, for all
workers in all private industries. This chart is based on information that the US Department of Labor gathered
nationally. Benefit costs in New Mexico may vary from these figures.
14
OTHER BENEFITS
Other benefits that some employers listed include: long- term disability, credit union, flexible spending ac-count,
use of company vehicles, subsidized meals, employee discounts, paid uniforms, mileage reimbursement, and
cafeteria plan.
Other Benefits - Full- Time
0%
20%
40%
60%
80%
100%
Long- term
disability
Credit union
Flexible
spending
Company
vehicles
Subsidized
meals
Employee
discounts
Paid uniforms
Mileage
reimbursement
Cafeteria plan
Participation Rate
Employer
Employee
Other Benefits - Part- Time
0%
20%
40%
60%
80%
100%
Long- term
disability
Credit union
Flexible
spending
Company
vehicles
Subsidized
meals
Employee
discounts
Paid uniforms
Mileage
reimbursement
Cafeteria plan
Participation Rate
Employer
Employee
15
Contact:
Business Name:
Address:
Benefits Survey Form If you have questions about our survey please
contact:
Elisa Walker- Moran, ( 505) 841- 8037
Economic Research and Analysis Bureau
New Mexico Department of Labor
Full- Time Employees Part- Time Employees
1. How many employees work in your company? ( If you have no part- time employees there is no need
to fill out the “ Part- Time Employees” column for the questions below.)
2. How many hours is the basic workweek for employees?
PAID LEAVE
3. How many paid holidays does the employer provide per year?
4. Does the employer offer a flexible paid time off program? Yes/ No ( If No then skip to 5.)
4a. Please describe the program offered:
4b. How many days off do employees accumulate per year after:
1 year of service?
3 years of service?
5 years of service?
10 years of service?
20 years of service?
5. How many days of sick leave are offered to employees per year?
6. How many vacation days do employees earn per year after:
1 year of service?
3 years of service?
5 years of service?
10 years of service?
20 years of service?
7. Is sick leave and vacation combined? Yes/ No
8. Does the employer offer personal leave for any of the following short- term needs? Paid/ Unpaid/ No
Funeral
Military service
Doctor/ dentist appointments
Maternity leave
Paternity leave
Jury duty
Other: ( please specify)
16
Full- Time Employees Part- Time Employees
HEALTH BENEFITS
9. Is group medical insurance offered to employees? Yes/ No ( If No then skip to 10.)
9a. If 9 is yes, what percentage of the total plan cost does the employer pay?
9b. What percentage of the employees participate?
9c. Can employees choose between healthcare plans? Yes/ No
9d. What percentage of employees are enrolled in the following plans?
Traditional fee- for- service
Health maintenance organization
Preferred provider organization
9e. Are dependent medical benefits offered to employees? Yes/ No
9f. If 9e is yes, what percentage of dependent medical costs does the employer pay?
10. Is dental insurance offered to employees? Yes/ No
11. Is vision insurance offered to employees? Yes/ No
12. What other types of health insurance are offered to employees? ( Please specify)
RETIREMENT BENEFITS
13. Is a retirement plan offered to employees? Yes/ No ( If No then skip to 14.)
13a. What percentage of employees participate in the following types of retirement plans?
Traditional defined- benefit pension
Deferred profit sharing
Defined contribution plans, such as 401( k)
Employee stock ownership
13b. Who funds the defined contribution plan?
Employer ( Please specify maximum percent of wage/ salary contribution)
Employee ( Please specify maximum matching percent of wage/ salary contribution)
LIFE INSURANCE
14. Is group life insurance offered to employees? Yes/ No
15. Is accidental death and dismemberment offered to employees? Yes/ No
FAMILY BENEFITS
16. Is childcare assistance offered to employees? Yes/ No ( If No then skip to 17.)
16a. What type of childcare assistance is provided? ( Please specify)
17. Are elder care benefits offered? Yes/ No
17
Full- Time Employees Part- Time Employees
EDUCATION AND TRAINING
18. Is educational assistance offered to employees? Yes/ No ( If No then skip to 19.)
18a. What types of educational assistance are available? ( Please specify type of assistance)
Job- related
Non- job- related
18b. Does the employer pay for short- term job training needs? Yes/ No
( Such as computer skills, professional development seminars, etc.)
18c. What other types of educational assistance does the employer provide? ( Please specify)
18d. What type of tuition assistance does the employer offer?
100% cost of course
Based on course grade
Based on seniority/ years of service
Other percentage of the cost of course ( Please give percentage)
FLEXIBLE WORK SCHEDULES
19. Are employees offered flexible work schedules? Yes/ No ( If No then skip to 20.)
19a. How many of your employees sometimes telecommute/ work at home?
19b. Is flextime offered? Yes/ No
19c. Can employees job share? Yes/ No
19d. Other: ( Please specify)
PAY INCREASES
20. What types of pay increases are offered to employees?
None
Cost of living
Merit
Longevity
Combination of above
Other: ( Please specify)
MONETARY BONUSES
21. What types of monetary bonuses are offered to employees?
None
Holiday
Performance- based
Longevity- base
Other: ( Please specify)
18
OTHER BENEFITS
22. Please list any additional benefits provided to the employees. Include the number or percentage of employees who take advantage of the benefit.
Full- Time Employees Part- Time Employees
COSTS
23. Approximately what is your firm’s cost of providing all fringe benefits, as a percentage of total payroll?
( If you do not have exact numbers please give your best approximation.)
Employer required benefits
Legally- mandated costs
( Such as Social Security, unemployment insurance, and worker’s compensation)
COMMENTS/ SUGGESTIONS
Thank you for your cooperation in completing this survey.
If you would like a copy of the completed benefits survey mailed to you please check this box:
Please include any comments or suggestions here:

Click tabs to swap between content that is broken into logical sections.

1
2000 Albuquerque Employee Benefits
NEW MEXICO DEPARTMENT OF LABOR
Clinton D. Harden, Jr., Secretary
New Mexico Department of Labor, Bureau of Economic Research and Analysis
Gerry Bradley, Chief Economist
Questions about this report should be directed to Elisa Walker- Moran, at ( 505) 841- 8037 or
EWalker- Moran@ state. nm. us.
Major Contributors:
Elisa Walker- Moran, Labor Economist
Karl Romero, Graphic Artist
JUNE 2000
The New Mexico Department of Labor wishes to thank those employers who provided data for this report.
FOR FURTHER INFORMATION CONTACT:
Economic Research and Analysis Bureau
New Mexico Department of Labor
401 Broadway, NE
PO Box 1928
Albuquerque, NM 87103
This report will be available on the Internet at http:// www. dol. state. nm. us/ dol_ lmif. html.
2
INTRODUCTION
During the first week of April 2000, a four- page benefits survey form was mailed to 806 employers in
Albuquerque, New Mexico. These employers were randomly selected from the 1999 America’s Labor Market
Information System, Employer Database. Of the 806 surveys sent, we received 206 replies, a 26 percent re-sponse
rate; 177 of these were usable responses. Extra surveys were sent to ensure a high response rate without
a second mailing. All the responding firms employ full- time employees while 54 percent also employ part- time
employees. The total employees for all the employers who responded to this survey was 38,485. The employers
surveyed range across industries, size and ownership types. The companies selected for the survey are non-government
entities.
We would like to thank each employer in the Albuquerque area who took the time to complete and return the
survey form. We are grateful for their efforts and hope that they find this report useful.
For additional copies of the report, to obtain more information or to offer comments, please contact our
office.
TABLE OF CONTENTS
Introduction ............................................................................................................................... .......................... 2
Summary ............................................................................................................................... .......................... 3
Definitions ............................................................................................................................... ......................... 4
Number Of Employees ............................................................................................................................... ... 6
Workweek ............................................................................................................................... .......................... 6
Paid Time Off ............................................................................................................................... ....................... 6
Life Insurance ............................................................................................................................... .................. 8
Accidental Death and Dismemberment Insurance .............................................................................................. 8
Retirement Benefits ............................................................................................................................... .......... 8
Family Benefits ............................................................................................................................... ................... 9
Education and Training ............................................................................................................................... ..... 10
Flexible Work Schedules ............................................................................................................................... . 10
Health Insurance ............................................................................................................................... ................ 11
Pay Increases and Monetary Bonuses ........................................................................................................... 12
Cost of Benefits ............................................................................................................................... .............. 13
Other Benefits ............................................................................................................................... ................ 14
Benefits Survey Form........................................................................................................................... .............. 15
3
SUMMARY OF SURVEY FINDINGS
This study found that the average workweek for most full- time employees is 40 hours. Beyond working a 40
hour workweek, most employees receive an average of seven paid holidays per year. In addition to holidays,
many employees also receive about eight days of flexible paid time off, which can include combined vacation and
sick. Most employers offer their employees anywhere from six to 13 separate vacation days depending on how
long they work for the firm. About half of employers offer employees about six days of sick leave separate from
flexible paid time off. A small percentage offer their employees unlimited sick leave. Other paid personal leave
includes days off for funerals, military service, doctor and dentist appointments, maternity and paternity leave, and
jury duty.
Most employers offer life and accidental death and dismemberment insurance to their employees. Most
employers also offer retirement benefits to their employees including: a traditional defined benefit pension plan,
deferred profit sharing, defined contribution plans, and employee stock ownership.
Maternity leave is offered to employees by over one- third of employers and paternity leave is offered to
employees by under one- third of employers. A small percentage of employers offer eldercare benefits to employ-ees.
A higher percentage of employers offer their employees childcare benefits. Childcare benefits include: 100
percent reimbursement, less than 100 percent reimbursement, in house child care, preschool and after school
care, a flexible spending account, and Section 125 Dependent Child Care Reimbursement.
Most employers offer paid education and training to their employees. This includes: job and non- job related
educational assistance, short- term training, paying 100 percent or a lesser percentage of the cost of the course,
paying for the course based on the course grade received, and seniority and years of service at the firm. Other
types of educational assistance listed include: scholarships, payment of licensing costs, continued education, work-shops,
apprenticeship training, and in- service training conferences.
Some employers offer some type of flexible work schedule. These employers allow their employees to
telecommute, work at home, job- share or take flex- time ( work a compressed workweek).
Health insurance is one of the fundamental parts of the benefits program. There are two main types of health
benefits: medical and dental. There are two components of each program: coverage for employees and depen-dents.
Most employers do offer medical benefits to their employees and their dependents. These employers pay
on average 86 percent of the cost of employee benefits and 84 percent of the cost of dependent benefits. Some
of these employers offer their employees a choice between the following medical plans: a traditional fee- for-service,
a health maintenance organization, and a preferred provider organization. Most employers do offer their
employees dental insurance and some offer vision insurance as well.
Employers offer a variety of pay increases including: cost of living, merit, and longevity. Most employers
offer a combination of pay increase types. Monetary bonuses are also offered to employees including: holiday,
performance based, longevity based, percentage of profits, signing bonuses, and company profits. As with pay
increases, employers offer their employees a combination of monetary bonus types.
This study found that employer- provided benefits cost the employers an average of 14 percent of total
payroll. Legally- mandated benefits, such as social security, unemployment insurance and worker’s compensation,
cost the employer an average of 12 percent of total payroll.
4
DEFINITIONS
EMPLOYEE BENEFITS TERMINOLOGY
Benefits: Nonwage compensation provided to employees. Benefits are grouped into five categories: Paid
leave ( vacations, holidays, sick leave); supplementary pay ( premium pay for overtime and work on holidays and
weekends, shift differentials, nonproduction bonuses): retirement ( defined benefit and defined contribution plans):
insurance ( life insurance, health benefits, short- term disability, and long- term disability insurance and legally re-quired
benefits ( Social Security and Medicare, Federal and State unemployment insurance taxes, and workers’
compensation).
Personal Leave: Also known as general leave, personal leave provides employees with time- off from work
for various purposes not covered by other types of leave plans.
Life Insurance: Provides a lump- sum payment to a designated beneficiary or beneficiaries of deceased em-ployees.
Companies may provide a basic amount of life insurance benefits, which may vary depending on an
employee’s age, income, or occupation, and allow employees to pay for additional amounts of coverage.
Accidental Death and Dismemberment Insurance ( AD& D): Insurance that provides payment for accidental
loss of life, limb, hearing, or sight. Insurance usually covers both occupational and nonoccupational deaths and
injuries, but coverage may be limited to one or the other. Double indemnity provisions of life insurance plans are
considered to be AD& D if they provide benefits for both accidental death and dismemberment.
Deferred Profit Sharing Plan: A defined contribution plan under which a company credits a portion of
company profits to employees’ accounts. Plans may set a fixed formula for sharing profits but this is not a require-ments.
Most plans hold money in employee accounts until their retirement, disability, or death.
Defined Contribution Plan: A retirement plan in which the employer makes specified contributions but the
amount of the retirement benefit is not specified. Defined contribution plans may be wholly or partially funded by
employers.
401( k), 403 ( b) Plans: Defined contribution benefits plan established under Section 401 ( k) of the Internal
Revenue Code ( IRC) permit employees to make pre- tax contributions via salary reduction agreements. IRC
Section 403 ( b) plans are deferred compensation plans for employees of certain not- for- profit organizations and
public schools.
Defined Pension Plan: A retirement plan that uses a specific, predetermined formula to calculate the amount
of an employee’s future benefit. In the private sector, defined benefit plans are typically funded exclusively by
employer contributions. In the public sector, defined benefit plans often require employee contribution.
Employee Stock Ownership Plans ( ESOP): A defined contribution plan in which the employer contributes to
a fund that invests primarily in company stock and makes distributions in stock or cash. The plan must be specifi-cally
designated in its name or official description as an “ employee stock ownership plan.”
5
Long- term Disability Insurance: Provides a monthly benefit to employees who, due to illness or injury, are
unable to work for an extended period of time. Usually LTD benefit payments begin after 3 or 6 months of
disability and continue until retirement age is reached, or for a specified number of months, depending on the
employee’s age at the time of the disability. Payments typically equal a fixed percent of predisability earnings.
Short- term Disability Plan: A benefit plan that provides full, partial, or a combination of full and partial pay, to
employees who are unable to work because of a non- work related accident or illness. Short- term disability
payments are normally paid for only a fixed number of weeks, typically 26 weeks. The benefit payment is either a
percentage of an employee’s earnings or a fixed dollar amount per week.
TYPES OF HEALTH INSURANCE PROGRAMS
Fee- For- Service Plan: A health care plan that reimburses care providers or patients after services have been
rendered. Fee- for- service plans allow workers to select the health care providers ( physicians and hospitals) of
their choice.
Health Maintenance Organization ( HMO): Organization that provides prepaid comprehensive health care
services. HMOs both insure and deliver health care services. Enrollees usually reside within a fixed geographic
area and are required to obtain services only from providers affiliated with the HMO. An exception to this case is
Point of Service Open- Ended HMOs, which allow enrollees the option of obtaining services from physicians and
facilities not affiliated with their HMO.
Preferred Provider Organization ( PPO): Preferred Provider Organization health plans offer a higher benefit
for services rendered by designated health care providers although plan participants are free to choose any pro-vider
they wish.
6
NUMBER OF EMPLOYEES
Full- Time: Ninety- five percent of the employers responded to this question. Total employees for all employ-ers
who responded is 29,969. The median employer has 25 full- time employees.
Part- Time: Total employees for all employers who responded is 8,516. The median employer has 6 part-time
employees.
WORKWEEK
The employer response rate for full- time employees was 89 percent and for part- time employees was 76
percent. The median and average workweek for full- time employees is 40 hours while for part- time employees it
is 25 hours. The minimum for full- time employees is 30 hours and for part- time it is five hours. The maximum is 50
hours for full- time and 40 hours for part- time employees.
PAID TIME OFF
There are two general types of paid time off. The traditional method allocates leave by separate categories
such as vacation and sick leave. A more recent trend is toward flexible programs where the leave classifications
are combined into one pool from which employees draw when they need time away.
Five categories of paid time off were surveyed: paid holidays, flexible paid time off, sick leave, vacation and
other paid personal time.
PAID HOLIDAYS
Of the 177 surveys used, 81 percent of employers offer anywhere from one to 23 days of paid holidays to
full- time employees, with the average at seven days. Forty- three percent of the employers offer anywhere from
two to 23 days of paid holidays to part- time employees, with the average at eight days.
FLEXIBLE PAID TIME OFF
Twenty- three percent of employers offer a flexible paid time off
program to their full- time employees and 15 percent to their part- time
employees. These employers offer a combination of vacation/ sick,
vacation/ sick/ paid time off and vacation/ sick/ paid time off/ holiday to
be used at the employee’s discretion. Eighteen percent of the employ-ers,
offer combined vacation and sick leave.
There are differences between full- time and part- time employees. More employers offer this benefit to their
full- time employees. Some of the employers that offer this benefit to full- time but not to part- time employees, also
offer fewer days than those who offer it to both types of employees.
Full- time employees receive a median of 12 flexible days off. Part- time employees receive a median of eight
flexible days off.
Years of Service Full- Time Part- Time
1 year 12 8
3 years 14 8
5 years 15 8
10- 20 years 21 10
Flexible PTO: Median Days Off Per Year
7
PAID SICK LEAVE
Fifty percent of the firms offer paid sick leave to full- time employ-ees
while 24 percent offer this benefit to part- time employees. Of
those that offer sick leave separate from vacation, full- time employees
receive a median of six paid sick days. Part- time employees receive a
median of four paid sick days.
Four percent of employers offer unlimited paid sick leave to full-time
employees. Six percent of employers offer unlimited paid sick
leave to part- time employees.
VACATION
Seventy- eight percent of the firms offer separate paid vacation to
their full- time employees. Thirty- seven percent of firms offer separate
paid vacation to their part- time employees. Generally, the longer an
employee is with a firm the more vacation they earn per year. The
median for those employed full- time for one year is six days off while
for those who work 20 years it is 15 days off. The median for those
employed part- time for one year is six days off while for those who
work 20 years it is 13 days off.
OTHER PAID PERSONAL LEAVE
Funeral, military service, doctor/ dentist
appointment, maternity/ paternity, and jury
duty are the most common paid leave allow-ances
offered by employers for other personal
needs. Full- time employees are offered a
higher percentage of these benefits than part-time
employees.
Employee Employers Median
Full- Time 50% 6
Part- Time 24% 4
Number of Sick Days Offered
Years of Service Full- Time Part- Time
1 year 6 6
3 years 10 8
5 years 11 10
10 years 15 11
20 years 15 13
Median Vacation Days Offered Per Year
Paid Other Personal Leave
0%
10%
20%
30%
40%
50%
60%
70%
Funeral
Military service
Doctor/ dentist
Maternity leave
Paternity leave
Jury duty
Moving
Education
Voting
Personal days
Offered by Employers
Full- Time
Part- Time
Unpaid Other Personal Leave
0%
5%
10%
15%
20%
25%
30%
35%
40%
45%
Funeral
Military service
Doctor/ dentist
Maternity leave
Paternity leave
Jury duty
Offered by Employers
Full- Time
Part- Time
8
LIFE INSURANCE
Life insurance is offered in 62 percent of firms to full- time employees and in
31 percent to part- time employees.
ACCIDENTAL DEATH AND DISMEMBERMENT INSURANCE
Accidental death and dismemberment insurance ( ADD) is offered in 51 percent of firms to full- time employ-ees
and in 30 percent to part- time employees.
Employees Life Death
Full- Time 62% 51%
Part- Time 31% 30%
Life & ADD Insurance
RETIREMENT BENEFITS
There were four categories of retirement benefits that were surveyed: tradi-tional
defined- benefit pension, deferred profit sharing, defined contribution plans
( such as 401( k) and 403b) and employee stock ownership. In a defined benefit
plan, the benefit amount is predetermined based on salary or years of service. In
a defined contribution plan, the employer or employee contributions are specified,
but the benefit amount is not guaranteed and is usually tied to investment returns.
Sixty- eight percent of employers offer retirement programs to their full- time employees and 38 percent to
their part- time employees.
Of those that answered, on average, 87 percent of
full- time employees participate in the traditional defined-benefit
pension - ten percent of employers answered this
question. On average, 86 percent of full- time employ-ees
participate in the deferred profit sharing - six percent
of employers answered this question. On average, 74
percent of full- time employees participate in the defined
contribution plans - 49 percent of employers answered
this question. On average, 91 percent of full- time em-ployees
participate in the employee stock ownership -
five percent of employers answered this question.
Of those that answered, on average, 100 percent
of part- time employees participate in the traditional de-fined-
benefit pension - four percent of employers an-swered
this question. On average, 98 percent of part-time
employees participate in the deferred profit sharing - two percent of employers answered this question. On
average, 67 percent of part- time employees participate in the defined contribution plans - 19 percent of employers
answered this question. On average, 93 percent of part- time employees participate in the employee stock owner-ship
- two percent of employers answered this question.
Forty- three percent of employers responded that they contribute to the retirement plan of their full- time
employees. On average, these employers match up to 11 percent of their employee’s 18 percent contribution.
Twenty percent of employers contribute to the retirement plan of part- time employees. On average, these employ-ers
match up to five percent of their employee’s 11 percent contribution.
Employee Percent offering
Full- time 68%
Part- time 38%
Retirement Programs
Retirement Plan Payment
0%
20%
40%
60%
80%
100%
Traditional
Deferred
profit
Defined
contribution
Stock
ownership
Employer
contribution
Employee
contribution
Average Employee Participation Rat
Full- Time
Part- Time
9
FAMILY BENEFITS
MATERNITY AND PATERNITY BENEFITS
Since 1993, the federal Family Medical
Leave Act ( FMLA) has required employers with
50 or more employees within a 75- mile area to
provide up to 12 weeks of job- protected un-paid
leave to eligible workers for the birth or
adoption of a child, placement of a foster child
in the home, care of a seriously ill family mem-ber,
or personal health reasons.
Full- time: Thirty- six percent of employers offer paid and 40 percent offer unpaid maternity leave to their
employees. Twenty- eight percent of employers offer paid and 41 percent offer unpaid paternity leave.
Part- time: Twenty- three percent of employers offer paid and 26 percent offer unpaid maternity leave to their
employees. Nineteen percent of employers offer paid and 24 percent offer unpaid paternity leave.
ELDERCARE BENEFITS
Four percent of firms offer elder care benefits to their full- time employees and two percent to their part- time
employees.
CHILDCARE BENEFITS
Full- time: Thirteen percent of the firms surveyed offer
childcare assistance to their employees. Two percent offer
less than 100 percent reimbursement. One percent offer
100 percent reimbursement. Four percent offer in- house
child care. One percent offer preschool and after school
care. One percent offer a flexible spending account. Two
percent offer section 125 Dependent Child Care Reimburse-ment
( DCCR).
Part- Time: Six percent of the firms surveyed offer
childcare assistance to their employees. Two percent offer
less than 100 percent reimbursement. One percent offer
100 percent reimbursement. One percent offer in- house
child care. One percent offer section 125 Dependent Child
Care Reimbursement.
Percent employers offering: Employee Full- Time Part- Time
Maternity leave Paid 36% 23%
Unpaid 40% 26%
Paternity leave Paid 28% 19%
Unpaid 41% 24%
Family Benefits
Family Benefits
0%
4%
8%
12%
16%
Elder care
Childcare
Percentage
reimbursement
100%
reimbursement
In house child
care
Preschool/ after
school care
Flexible
spending
Section 125
DCCR
Offered by Employer
Full- Time
Part- time
10
EDUCATION AND TRAINING
Full- Time: Sixty- seven percent of employers offer
educational assistance to their employees. Fifty- seven
percent of employers offer job related educational as-sistance
to their employees while 11 percent offer non-job
related educational assistance. Fifty- eight percent
of employers will pay for short- term training. Thirty- six
percent pay for 100 percent of the cost of the course
and ten percent pay a lesser percentage. Twenty per-cent
will pay for the course based on the course grade
received and two percent based on seniority and years
of service.
Part- Time: Forty percent of employers offer edu-cational
assistance to their employees. Thirty- one per-cent
offer job related educational assistance to their
employees while six percent offer non- job related edu-cational
assistance. Thirty- five percent of employers
pay short- term training. Seventeen percent pay for 100
percent of the cost of the course and two percent pay a
lesser percentage. Thirteen percent will pay for the course
based on the grade received.
Other Educational Assistance: Other types
of assistance listed include scholarships, payment
of licensing costs, continued education, workshops,
apprenticeship training, and in- service training con-ferences.
FLEXIBLE WORK SCHEDULES
Full- time: Twenty- eight percent of employers
offer some type of flexible work schedule. Nine
percent allow their employees to telecommute or
work at home. Seventeen percent offer flex- time.
Nine percent let their employees job- share.
Part- time: Thirty- two percent of employers
offer some type of flexible work schedule. Four
percent allow their employees to telecommute or
work at home. Twenty percent offer flex- time.
Eleven percent let their employees job- share.
Flexible Work Schedule
0%
10%
20%
30%
40%
Percent of
employers
offering:
Telecommuting
offered
Flextime
offered
Job sharing
offered
Employers Offering
Full- time
Part- time
Educational Assistance and Training
0%
20%
40%
60%
Percent
employers
offering
Job related
Non- job
related
Paid short-term
training
Employers Offering
Full- Time
Part- Time
Type of Educational Assistance
0%
10%
20%
30%
40%
100% cost
of course
Other
percentage
Based on
course
grade
Based on
seniority
Employers Offering
Full- time
Part- time
Other Educational Assistance
0%
2%
4%
6%
8%
10%
Scholarship
Licensing
costs
Continued
education
Workshops
Apprenticeship
training
Training
conference
Employers Offering
Full- time
Part- time
11
HEALTH INSURANCE
Health insurance is one of the fundamental parts of a benefits program. There are two main types of health
benefits: medical and dental. There are two components of each program: coverage for employees and depen-dents.
MEDICAL INSURANCE
EMPLOYEE MEDICAL INSURANCE
Eighty- eight percent of employers offer
medical benefits to full- time employees and 39
percent to part- time. Eighty percent of full- time
employees participate in a medical benefits pro-gram.
Sixty percent of part- time employees
participate. Employers pay 86 percent of their
full- timers’ and 63 percent of their part- timers’
health insurance.
Full- time: Twenty- nine percent of employ-ers
offer their employees a choice between health
care plans. According to employers, at the me-dian,
75 percent of the full- time employees par-ticipate
in traditional fee- for- service, 66 percent
in health maintenance organizations ( HMOs),
and 67 percent in preferred provider organiza-tions.
Part- Time: Nineteen percent of employers offer their employees a choice between health care plans. Ac-cording
to employers, at the median, 60 percent of employees participate in traditional fee- for- service, 26 percent
in health maintenance organizations ( HMOs), and 23 percent in preferred provider organizations.
DEPENDENT MEDICAL INSURANCE
Seventy- nine percent of employers offer medical
insurance for dependents of full- time employees. Those
that offer medical insurance pay a median of 84 percent
of the cost. Thirty- five percent offer medical insurance
for dependents of part- time employees. Those that of-fer
medical insurance pay a median of 83 percent of the
cost.
DENTAL & VISION INSURANCE
About 68 percent of employers offer dental insurance to full- time employees and 33 percent to part- time.
About 41 percent of employers offer vision insurance to full- time employees and 16 percent to part- time.
Employee
Employers
Offering Median
Employer payment rate Full- Time 88% 86%
Part- Time 39% 63%
Employee participation rate Full- Time 81% 80%
Part- Time 21% 60%
Employee Medical Insurance
Participation rate: Employee
Employers
Offering Median
Traditional fee- for- service Full- Time 8% 75%
Part- Time 4% 60%
Health maintenance organization Full- Time 55% 66%
Part- Time 13% 26%
Preferred provider organization Full- Time 29% 67%
Part- Time 6% 23%
Insurance Plans
Employee
Employers
Offering Median
Employer payment rate Full- Time 79% 84%
Part- Time 35% 83%
Dependent Medical Benefits
12
PAY INCREASES AND MONETARY BONUSES
PAY INCREASES
Full- Time: Five percent of the employers offer no pay
increase. Seven percent offer pay increases based on the cost
of living, 39 percent based on merit, and one percent based on
longevity. Many employers, 48 percent offer pay increases
based on a combination of the factors above.
Part- Time: Five percent of the employers offer no pay
increase. Seven percent offer pay increases based on the cost
of living, 33 percent based on merit, and two percent based on
longevity. Many employers, 31 percent offer pay increases
based on a combination of the factors above.
MONETARY BONUSES
Full- Time: Twenty percent of employers do not offer
monetary bonuses. Thirty- two percent offer holiday bonuses.
Many employers, 58 percent, offer performance- based bo-nuses.
Thirteen percent offer longevity- based bonuses and
one percent offer a percentage of the profits, signing bonuses
and company profits.
Part- Time: Twenty- five percent of employers do not
offer monetary bonuses. Twenty- four percent offer holiday
bonuses. Many employers, 38 percent, offer performance-based
bonuses and 15 percent offer longevity- based bonuses.
Monetary Bonuses
0%
10%
20%
30%
40%
50%
60%
None
Holiday
Performance
based
Longevity
based
Percentage
of profits
Signing
bonus
Company
profits
Full- Time
Part- Time
Pay Increases
0%
10%
20%
30%
40%
50%
None
Cost of living
Merit
Longevity
Combination
Full- Time
Part- Time
13
COST OF BENEFITS
We also asked employers for their firm’s cost of providing all fringe benefits, as a percentage of total payroll.
Full- Time: Sixty percent of employers responded to this question. Employer- provided benefits cost the
employer an average of 14 percent of total payroll. Legally- mandated benefits such as social security, unemploy-ment
insurance and worker’s compensation cost the employer an average of 12 percent of total payroll.
Part- Time: Thirty- three percent of employers responded to this question. Employer- provided benefits cost
the employer, on average, eight percent of total payroll. Legally- mandated benefits such as social security, unem-ployment
insurance and worker’s compensation cost the employer an average of nine percent of total payroll.
Cost of Benefits: Full- Time Employer
provided
benefits
14%
Legally-mandated
benefits
12%
Payroll
74%
Cost of Benefits: Part- Time
Payroll
83%
Employer
provided
benefits
8%
Legally-mandated
benefits
9%
1998
Total compensation 100
Wages and salaries 72.4
Benefits 27.7
Paid leave 6.6
Supplemental pay 2.6
Insurance 6.3
Retirement 3.8
Total legally required 8.2
Social Security/ Medicare 5.8
Social Security 4.7
Medicare 1.2
Unemployment insurance 0.7
Workers compensation 1.8
Other 0.2
Source: Bureau of Labor Statistics, Compensation
and Working Conditions, Spring 1999
Percent of employer compensation cost
by components of compensation, all
workers, all private establishments
The table below shows the percent of employer compensation cost by components of compensation, for all
workers in all private industries. This chart is based on information that the US Department of Labor gathered
nationally. Benefit costs in New Mexico may vary from these figures.
14
OTHER BENEFITS
Other benefits that some employers listed include: long- term disability, credit union, flexible spending ac-count,
use of company vehicles, subsidized meals, employee discounts, paid uniforms, mileage reimbursement, and
cafeteria plan.
Other Benefits - Full- Time
0%
20%
40%
60%
80%
100%
Long- term
disability
Credit union
Flexible
spending
Company
vehicles
Subsidized
meals
Employee
discounts
Paid uniforms
Mileage
reimbursement
Cafeteria plan
Participation Rate
Employer
Employee
Other Benefits - Part- Time
0%
20%
40%
60%
80%
100%
Long- term
disability
Credit union
Flexible
spending
Company
vehicles
Subsidized
meals
Employee
discounts
Paid uniforms
Mileage
reimbursement
Cafeteria plan
Participation Rate
Employer
Employee
15
Contact:
Business Name:
Address:
Benefits Survey Form If you have questions about our survey please
contact:
Elisa Walker- Moran, ( 505) 841- 8037
Economic Research and Analysis Bureau
New Mexico Department of Labor
Full- Time Employees Part- Time Employees
1. How many employees work in your company? ( If you have no part- time employees there is no need
to fill out the “ Part- Time Employees” column for the questions below.)
2. How many hours is the basic workweek for employees?
PAID LEAVE
3. How many paid holidays does the employer provide per year?
4. Does the employer offer a flexible paid time off program? Yes/ No ( If No then skip to 5.)
4a. Please describe the program offered:
4b. How many days off do employees accumulate per year after:
1 year of service?
3 years of service?
5 years of service?
10 years of service?
20 years of service?
5. How many days of sick leave are offered to employees per year?
6. How many vacation days do employees earn per year after:
1 year of service?
3 years of service?
5 years of service?
10 years of service?
20 years of service?
7. Is sick leave and vacation combined? Yes/ No
8. Does the employer offer personal leave for any of the following short- term needs? Paid/ Unpaid/ No
Funeral
Military service
Doctor/ dentist appointments
Maternity leave
Paternity leave
Jury duty
Other: ( please specify)
16
Full- Time Employees Part- Time Employees
HEALTH BENEFITS
9. Is group medical insurance offered to employees? Yes/ No ( If No then skip to 10.)
9a. If 9 is yes, what percentage of the total plan cost does the employer pay?
9b. What percentage of the employees participate?
9c. Can employees choose between healthcare plans? Yes/ No
9d. What percentage of employees are enrolled in the following plans?
Traditional fee- for- service
Health maintenance organization
Preferred provider organization
9e. Are dependent medical benefits offered to employees? Yes/ No
9f. If 9e is yes, what percentage of dependent medical costs does the employer pay?
10. Is dental insurance offered to employees? Yes/ No
11. Is vision insurance offered to employees? Yes/ No
12. What other types of health insurance are offered to employees? ( Please specify)
RETIREMENT BENEFITS
13. Is a retirement plan offered to employees? Yes/ No ( If No then skip to 14.)
13a. What percentage of employees participate in the following types of retirement plans?
Traditional defined- benefit pension
Deferred profit sharing
Defined contribution plans, such as 401( k)
Employee stock ownership
13b. Who funds the defined contribution plan?
Employer ( Please specify maximum percent of wage/ salary contribution)
Employee ( Please specify maximum matching percent of wage/ salary contribution)
LIFE INSURANCE
14. Is group life insurance offered to employees? Yes/ No
15. Is accidental death and dismemberment offered to employees? Yes/ No
FAMILY BENEFITS
16. Is childcare assistance offered to employees? Yes/ No ( If No then skip to 17.)
16a. What type of childcare assistance is provided? ( Please specify)
17. Are elder care benefits offered? Yes/ No
17
Full- Time Employees Part- Time Employees
EDUCATION AND TRAINING
18. Is educational assistance offered to employees? Yes/ No ( If No then skip to 19.)
18a. What types of educational assistance are available? ( Please specify type of assistance)
Job- related
Non- job- related
18b. Does the employer pay for short- term job training needs? Yes/ No
( Such as computer skills, professional development seminars, etc.)
18c. What other types of educational assistance does the employer provide? ( Please specify)
18d. What type of tuition assistance does the employer offer?
100% cost of course
Based on course grade
Based on seniority/ years of service
Other percentage of the cost of course ( Please give percentage)
FLEXIBLE WORK SCHEDULES
19. Are employees offered flexible work schedules? Yes/ No ( If No then skip to 20.)
19a. How many of your employees sometimes telecommute/ work at home?
19b. Is flextime offered? Yes/ No
19c. Can employees job share? Yes/ No
19d. Other: ( Please specify)
PAY INCREASES
20. What types of pay increases are offered to employees?
None
Cost of living
Merit
Longevity
Combination of above
Other: ( Please specify)
MONETARY BONUSES
21. What types of monetary bonuses are offered to employees?
None
Holiday
Performance- based
Longevity- base
Other: ( Please specify)
18
OTHER BENEFITS
22. Please list any additional benefits provided to the employees. Include the number or percentage of employees who take advantage of the benefit.
Full- Time Employees Part- Time Employees
COSTS
23. Approximately what is your firm’s cost of providing all fringe benefits, as a percentage of total payroll?
( If you do not have exact numbers please give your best approximation.)
Employer required benefits
Legally- mandated costs
( Such as Social Security, unemployment insurance, and worker’s compensation)
COMMENTS/ SUGGESTIONS
Thank you for your cooperation in completing this survey.
If you would like a copy of the completed benefits survey mailed to you please check this box:
Please include any comments or suggestions here: